Union agreements to save city of Chico more than $2 million

CHICO — Memorandums of understanding with four of the city's nine bargaining groups will be presented to the Chico City Council on Tuesday for a two-week review.

The combined savings for the contracts, which range from two to three years, is more than $2 million. Draft copies of the MOUs or pay and benefits resolutions are being presented to initiate the two-week sunshining period for council and community member review, with the final presentation expected to go before council Jan. 21.

The International Firefighters Association represents the most significant savings, at nearly $1.8 million from Jan. 1 to December 2016. The majority of the savings was achieved as a result of eliminating the retiree medical expense and health trust contribution — about $619,000 in savings, and the CalPERS employer-paid member contribution — more than $1.4 million in savings, according to the staff report.

The confidential employee group represents $9,900 in savings over the two-year contract. The two-year contract with the Chico Employees Association represents $92,000 in savings.

Lastly, the management employee group translates to $47,000 in savings this fiscal year and $103,000 for the following fiscal year. There will also be undetermined savings due to a decreased vacation accrual cap, eliminating a workers compensation labor code equivalent and employees paying their FICA-Medicare contribution.

"The city is extremely appreciative of our labor groups for their efforts with completing these negotiations in time so we can achieve the cost savings necessary to help balance our budget for the foreseeable future," said Assistant City Manager Mark Orme.

"The city realizes the sacrifices of the employees during these difficult times while the city is moving forward with concessionary bargaining.

"We realize the ultimate outcome will be beneficial to the community and help us overcome the financial conditions the city is suffering from," Orme added.

Five additional MOUs still need to be brought forward, including contracts for the Chico Police Officers Association, Chico Public Safety Association, Public Safety Management, Stationary Engineers Local 39 and the Service Employees International Union — Trades and Crafts. Orme said the city is still in the process of meeting and conferring in good faith and anticipates completing negotiations in the coming months.

Bargaining units have been meeting with the city for months to hash out contracts. In September, the City Council voted 6-1 to approve an $80,000 appropriation from the general fund emergency reserve for the purpose of hiring a negotiator, an action that spurred some public concern about the appropriateness of using emergency funds for such activities instead of using in-house staff.

At the time, City Manager Brian Nakamura said the expense could pay for itself, and Councilor Mary Goloff said it was worth it if it helped the city ensure the community's best interests.

"We need to be in a strong and efficient position to protect the resources we have," she said.

Also Tuesday, the council will consider drafting a social hosting ordinance that would impose liability on people hosting or responsible for events on private property where alcohol is possessed and consumed by people under the age of 21. The agenda item is for discussion only, and the council could provide direction to the City Attorney's Office to modify the draft or return the ordinance for introduction at a future meeting.

The council will also have an opportunity Tuesday to rule on alcohol sales at the Bidwell Park Municipal Golf Course. The Bidwell Park and Playground Commission, on a 4-3 vote, is recommending the council add conditions to the golf course's lease to allow alcohol consumption as long as the alcohol license is linked to food service, the park's glass restriction continues, and there are no sales after 10 p.m. or off-site sales.